American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

TRUMP meme coin sparks ethics firestorm as critics decry conflicts of interest

by admin January 22, 2025
January 22, 2025
TRUMP meme coin sparks ethics firestorm as critics decry conflicts of interest

Donald Trump has returned to the White House under a cloud of controversy after launching a multibillion-dollar cryptocurrency venture involving personal meme coins, $TRUMP and $MELANIA.

Speaking to reporters on Tuesday, President Donald Trump briefly addressed the TRUMP memecoin, which debuted on January 17, just days before his inauguration.

“I don’t know much about it other than I launched it,” Trump remarked. “I heard it was very successful. I haven’t checked.”

The move has some pro-crypto takers who see the development as a game-changer for the industry.

“The fact that a president is doing this brings some sort of legitimacy to the space, and I think just means that the industry is moving ahead in a way it hasn’t for the last 10 years,” said Paul Howard, senior director at crypto market-maker Wincent

However, ethics officials and presidential experts have largely condemned the move, citing conflicts of interest that could damage public trust in the presidency.

“There are shameful and major conflicts of interest with respect to his family business benefiting from his cryptocurrency policies,” said James Thurber, the founder and former director of the Center for Congressional and Presidential Studies.

Trump “does not seem to worry about the public interest with respect to cryptocurrency”, added Thurber.

“He seems to be driven by profit and wanting to be a major part of the billionaire class in the US.”

The coins debuted just days before Trump’s inauguration, with $TRUMP launched on Friday and $MELANIA following on Sunday.

$TRUMP a setup to help the Prez profit from crypto: ethics experts

Walter Shaub, former director of the US Office of Government Ethics, criticized Trump’s actions as a fundamental threat to ethical governance.

“America voted for corruption, and Trump is wasting no time delivering it,” said Walter Shaub, the former director of the US Office of Government Ethics, who served under former presidents Barack Obama and Trump.

“What was once a government ethics program, made partly of laws and partly of norms, is a smoldering crater,” he said.

Much of the concern stems from the intertwined interests of Trump’s administration and his business ventures.

CIC Digital LLC, an affiliate of the Trump Organization, and Fight Fight Fight LLC, co-owned by CIC Digital, collectively hold 80% of the tokens, which means that Trump-linked businesses could have gained $8 billion worth of crypto over the weekend.

Similarly, $MELANIA is offered by MKT World LLC, a firm Melania Trump incorporated in 2021.

Critics argue this setup allows the Trumps to profit from industries they simultaneously regulate, with potential national security implications.

The Securities and Exchange Commission (SEC) on Tuesday already took its first step towards reducing regulatory barriers for the cryptocurrency industry by launching a “crypto task force” to create a clear and comprehensive regulatory framework for crypto assets.

Legal fallout looms for TRUMP meme coin?

Legal experts foresee lawsuits on the horizon.

Preston Byrne, a cryptocurrency-focused attorney, predicted a 90% chance of legal action within two weeks, citing the likelihood of financial losses and regulatory scrutiny.

Despite their initial market boom, with the TRUMP memecoin hitting a market cap of $13 billion during its peak over the weekend, both tokens have been quite volatile ever since.

TRUMP’s market cap has fallen to approximately $8 billion, with the token currently trading around $42.

Additionally, watchdog groups like the Project on Government Oversight raised alarms over the lack of oversight in Trump’s crypto ventures.

“Besides being a blatant financial conflict of interest, this deepens Trump’s engagement in a sector with significant national security risks,” said Danielle Brian, the group’s executive director.

Nic Carter, a prominent crypto investor, highlighted another danger: foreign influence. “Personal meme coins open the door for foreign actors, including sanctioned individuals, to gain leverage over US leaders,” he said.

Democratic lawmakers, including Representative Maxine Waters, have called for greater transparency and accountability.

“Anyone globally, even individuals sanctioned by the US, can now trade and profit off of $TRUMP through unregulated platforms,” Waters warned.

Meme coins: fad or financial risk?

While meme coins like $TRUMP and $MELANIA are marketed as fun, non-investment assets, their extreme volatility and speculative nature worry critics.

Carol Alexander, a finance professor at the University of Sussex, likened the coins to fan tokens that rise and fall with public sentiment.

However, even fans acknowledge the risks.

Both tokens lost value during Trump’s inaugural events, though their combined valuation remained above $9 billion.

Such dramatic fluctuations underscore the precarious nature of meme coins as financial assets.

The post TRUMP meme coin sparks ethics firestorm as critics decry conflicts of interest appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
USD/TRY forecast: Turkish lira crashes ahead of CBRT rate cut
next post
US President Donald Trump renews tariff threats on EU, sets deadline for China

Related Posts

Ibovespa struggles as Brazilian real hits two-week lows...

November 9, 2024

Inox Green Energy, Premier Energies and six other...

January 21, 2025

Xi signals 5% GDP growth for 2024, more...

January 1, 2025

Tariffs and spending cuts likely to increase US...

March 30, 2025

Brazil’s tax agency strike threatens fiscal stability and...

February 5, 2025

Eight Chinese migrants found dead on Mexico beach...

April 4, 2024

Former Japanese soldier reaches settlement with sexual assault...

July 11, 2024

Former Honduran president found guilty in drug trafficking...

March 9, 2024

Zelensky and Trump to sign critical minerals deal...

February 28, 2025

Germany cuts GDP forecast to just 0.3% for...

January 30, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved